Agenda item

This report sets out in detail the draft General Fund Budget for 2021/22 and the latest Medium Term Financial Plan. The Financial Plan sets out the key work streams for the Council to focus on which, collectively, aim to address the significant shortfall in annual budget projected over the medium term.

This report contains the following Annexes:

            Annexe 1 – draft Medium Term Financial Plan

            Annexe 2 -  draft General Fund Budget Summary 2021/22

            Annexe 3 – statement of key variations from 2020/21 base budget 

            Annexe 4 – draft Fees & Charges for 2021/22

            Annexe 5 – draft Capital Programme

            Annexe 6 – schedule of projected reserves and provisions

Recommendation

The Executive recommends to Council that it:

1.    agree a £5 increase in Waverley’s Band D Council Tax Charge for 2021/22 with resultant increases to the other council tax bands;

2.    agree to make no change to the Council’s existing Council Tax Support Scheme and continue to allocate additional Government support to help those council taxpayers most financially affected by the pandemic;

3.    agree the proposed Fees and Charges for 2021/22;

4.    approve the General Fund Budget for 2021/22 as summarised in Annexe 2, incorporating the baseline net service cost variations included at Annexe 3 and the staff pay award;

5.    approve the specific use of reserves to mitigate the Covid-19 uncertainty risk and the estimated reduction in retained business rate funding over the Medium Term Finance Plan period, and the other reserve movements as set out in the annexe 6,

6.    approve the General Fund Capital Programme; and,

7.    agree to extend the 2020/21 Capital Strategy to cover the period up to the Council meeting in February 2022 at the latest.

89.1     The Leader of the Council introduced the General Fund Budget 2021/2022 and Medium Term Finance Plan 2021/22 – 2023/24. The budget proposed reflected the financial impact of Covid, and the failure of the government to reimburse the council fully for the extra costs incurred and the unanticipated severe loss of revenue. This was on top of the financial pressures already anticipated, arising from the removal of the Revenue Support Grant, reduction in New Homes Bonus, and iniquitous retention of local Business Rates. The ability of the council to raise investment income had also been restricted by changes to the terms of loans from the Public Works Loan Board.

89.2     The Leader invited the Finance Portfolio Holder, Cllr Merryweather, to present the detailed budget proposals. Cllr Merryweather’s slides and speech are annexed to these minutes.

89.3     The Leader of the Conservative Group, Cllr Potts, addressed the meeting on behalf of the Principal Opposition Group. The Conservative Group recognised the gravity of the council’s financial position, and would not be opposing the proposed budget. Cllr Potts had worked with the Leader and Cllr Merryweather on coming to a cross-party agreement on a letter to the Secretary of State, to lobby for a much fairer distribution of business rates. Looking forward, there was considerable uncertainty for the council. Whilst £2.2m of financial compensation had been received from the government, there was still a huge budget gap to fill, and the council’s two main sources of income in the form of car parks and leisure centres had fallen off a financial cliff, due to the pandemic. The council could not run at a deficit, and had to balance its budget. Cllr Potts had some concerns that the proposed budget was overly pessimistic; it was recognised that it was not possible to just use reserves built up over years of careful and prudent financial management, and the biggest concern was the financial risk associated with the leisure centres. The council had already paid £2.7m to Places Leisure in compensation but it was vital that the council continued to work closely with Place Leisure to keep to a minimum future compensation payments in order not risk the future of the council’s leisure centres. There was an exciting opportunity to work with Places Leisure on a new leisure centre and community hub for Cranleigh, that would respond to changes in the lifestyles of residents as we emerged from the pandemic lockdown; and there would be opportunities for the council to invest in outdoor spaces and other assets to deliver both a financial benefit and benefit the health and well-being of Waverley communities. In concluding, Cllr Potts, thanked Cllr Merryweather for his informative finance briefings, and officers from across the council who had worked so hard for residents and Waverley communities throughout the year.

89.4     The Mayor opened up the debate, and the following Members spoke: Cllrs Follows, Hunt, Edmonds, Mulliner, MacLeod, Wilson, Townsend, Goodridge, Dickson, Baker, Peter Martin, Hyman, Gray, Rosoman, and Foryszewski.

(Cllr Jan Floyd-Douglass left the meeting at 10.14pm)

89.5     In concluding the debate, the Leader formally moved the recommendations in the report, which were seconded by Cllr Follows.

89.6     In accordance with Procedure Rule 17.4, the Mayor called for a recorded vote on the recommendations.

89.7     The vote was carried, with votes in favour 49, and against 1. Cllr Hyman abstained on the recommended to increase the Council Tax.

89.8     RESOLVED to:

1.    agree a £5 increase in Waverley’s Band D Council Tax Charge for 2021/22 with resultant increases to the other council tax bands;

2.    agree to make no change to the Council’s existing Council Tax Support Scheme and continue to allocate additional Government support to help those council taxpayers most financially affected by the pandemic;

3.    agree the proposed Fees and Charges for 2021/22;

4.    approve the General Fund Budget for 2021/22 as summarised in Annexe 2, incorporating the baseline net service cost variations included at Annexe 3 and the staff pay award;

5.    approve the specific use of reserves to mitigate the Covid-19 uncertainty risk and the estimated reduction in retained business rate funding over the Medium Term Finance Plan period, and the other reserve movements as set out in the annexe 6,

6.    approve the General Fund Capital Programme; and,

7.      agree to extend the 2020/21 Capital Strategy to cover the period up to the Council meeting in February 2022 at the latest.

For:

Cllrs Brian Adams, Christine Baker, David Beaman. Roger Blishen, Peter Clark, Carole Cockburn, Richard Cole, Steve Cosser, Martin D’Arcy, Jerome Davidson, Kevin Deanus, Sally Dickson, Patricia Ellis, David Else, Jenny Else, Paul Follows, Mary Foryszewski, Maxine Gale, Michael Goodridge, John Gray, Joan Heagin, Val Henry, Dan Hunt, Jerry Hyman*, Peter Isherwood, Anna James, Robert Knowles, Andy MacLeod, Penny Marriott, Peter Marriott, Michaela Martin, Peter Martin, Mark Merryweather, Stephen Mulliner, John Neale, Peter Nicholson, Nick Palmer, Julia Potts, Ruth Reed, Paul Rivers, Penny Rivers, John Robini, Anne-Marie Rosoman, Richard Seaborne, Liz Townsend, John Ward, Michaela Wicks, Steve Williams, and George Wilson.

*Cllr Hyman abstained on the resolution to increase Council Tax.

Against: 1

Cllr Brian Edmonds